Monday, May 31, 2010

What happens if the borrower I cosigned for doesn't pay?

If the original borrower doesn't pay the debt, you will have to! The creditor may ask you to pay up to the full amount of the debt plus late fees and collection costs not just half. In some cases the creditor may try to collect from you first without trying to collect from the original borrower.Studies show that if the original borrower defaults or fails to pay the loan, 3 out of 4 cosigners are asked to pay the debt.